This video explains why annuities are terrible investments and why investment advisers (brokers / salesmen) shamelessly continue to aggressively push them. Correction: I meant to say “S&P 500 index” not “Wilshire 500”. Ticker symbol SPY is an ETF that seeks to replicate the S&P 500 index. TMW is an ETF that seeks to replicate the Wilshire 5000 index. There is NO major advantage to locking your money in prison until age 59 1/2, but that’s what investment advisers love to do because they earn HUGE 5 – 14% commissions when they can convince you to lock your money up in an annuity. “Investment adviser” salesmen love to falsely tell you that annuities have these “great tax advantages” but in reality this is a lie. You’ll be paying the HIGHER “ordinary income” tax rate on annuity gains. Any other normal investments like stocks, bonds, ETF’s and mutual funds are taxed at the normal and LOWER “capital gains” rate. A professor at Baylor University and expert witness on annuity products, William Reichenstein says that over the long term, simply investing in a typical conservative portfolio (conservative stocks and bonds or the equivalent ETF’s) easily beats an index annuity. According to Reichenstein, over the last 44 years, the average index annuity would have underperformed a very conservative portfolio consisting of 85% one-month T-bills, and 15% large-cap stocks by nearly two percent per year, on average. The content in this video does not constitute individual investment …

Disgruntled? That’s funny too. I enjoy helping my clients in all areas with their money, and sometimes an Annuity is﻿ the perfect fit for guaranteed income, sometimes it’s not. But your video and information is incomplete and one sided, and for that reason I love showing my clients these videos so they can see how not to sell something, and why listening to an opinion is never a good idea. Thanks, and keep the videos coming!

Sometimes people lose all of their money with MLP’s and LP’s. They have much more risk than brokers disclose, that’s for sure. Brokers often earn about 9% when they sell these investments. That’s WHY they push them! ANYTHING with a higher yield has more risk. There’s investments that pay 20%. Those are even riskier. Con Edison has﻿ a yield of only 4.5%, but it’s less﻿ risky than all of the above. Better for seniors to buy a mix of ETF’s and treasuries as per Reichenstein’s study.

I had recently spoken to my parents who are making a﻿ whopping 1.5% on their anuity (hardly enough to live on). None the less I have shown them that if they had allowed me to invest just $50k of their money I could have made them 4x’s what their anuity is paying. I can’t stress enough, your money is everything! So why not take the time to understand how it works.

Another disgruntled broker who is upset with my truth telling videos. Hmmmm. Read the 2nd paragraph of the description. Since 1957 there has never even been﻿ a 3 year period in which the 85/25 portfolio of T-bills and S&P 500 index stocks has lost money. Perfect for someone who is 60 years old and terrified of the market AND it easily beats an index annuity that the terrified 60 year old would be sold by a broker / insurance salesman.

Hilarious! This video was funny, and barely touched the market of Annuities and who should buy them. Videos like these cannot do anyone any good. Listening to someone rant about why they don’t like something is not information, it’s an opinion. Maybe an Annuity isn’t a good option for a 30 year old,﻿ but did this person mention anything about someone who is 60 years old and getting ready for retirement years and would like Guaranteed growth? Hmmm, I didn’t see it in there. Aweful Video!

Ever notice how fiduciary investment advisers never sell annuities to the clients who hire them? It’s because annuities are only good for brokers and insurance agents who want﻿ to make lots of money selling them.

no commission comes form an annuity.
you can have annuities that have no surrender period. (and all have waivers for death, illness, even some cover losing your job)
the 59 and 1/2 rules is for IRA’s. you should know that one especially.
Long term, like 10 years for a garunteed 10% income rider?
have you ever even worked in﻿ the senior market? I don’t know what you’ve seen but the indexed annuities I’ve seen have no fee’s.

The comments in this video are very broad and do not apply to all types of annuities. I spend alot of time educating people in regard to annuities and I feel that by not addressing them by type (Fixed, variable and indexed) and then running down the specifics you are not providing the most accurate﻿ information.

If you want one sided then watch all of the other pro-annuity videos posted by commission hungry brokers on YouTube. I would never lock my money up for 10+ years to get 3 – 4%, minus ordinary income tax, minus high annual fees. How do you think the insurance company recoups that big sales commission + 1/4% trailer fee? If 3 -﻿ 4% was the goal then I’d invest more heavily in a low volatility ETF like SPLV, then pay only capital gains tax whenever I felt like selling portions and without penalty.

E>T>F
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.[1] An ETF holds assets such as stocks, commodities, or﻿ bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.[2][3] ETFs are the most popular type of exchange-traded product

so you are not a broker … cool … well i just think this video is a little one sided …. annuities can provide 3-4 % (take home ) guaranties which is more than most CD’s out there ..so that’s why i kinda like those things If planed correctly it can work for your benefit however if not than this video applies 100 % ﻿ Now … the packet that comes with the annuity should always be disclosed if it is not you have the FREE LOOK period to give it back with full refund